Resurge Growth Partners has launched a €120m venture equity vehicle aimed at supporting high-potential European and Israeli scale-ups that have surpassed the venture capital phase but are not ready for traditional private equity. This strategic investment will bridge the gap between venture capital and private equity, providing crucial support for businesses at this critical junction.
- The vehicle intends to invest over €120m in the next three years, with nearly half of the capital already secured.
- This initiative particularly targets ‘venture graduates’—companies that no longer fit the venture capital model but aren’t yet fit for private equity.
- Resurge’s strategy includes capital provision, operational expertise, and time for a profitable transition from VC funding to sustainable growth.
- The fund’s backing comes from General Partner commitments and a leading family office, with additional support from family offices and high-net worth individuals.
Resurge Growth Partners has introduced a new venture equity vehicle with a fund size exceeding €120m, designed specifically to assist European and Israeli companies that have evolved beyond the venture capital framework but are not yet ripe for private equity investment. This new funding approach is intended to address the gap many promising companies face as they mature from start-up to larger enterprises.
The firm, based in Kentish Town, plans to allocate these funds over a period of three years. It has already secured close to fifty percent of the capital, thanks to contributions from its founding General Partners (GPs) and a prominent family office, ensuring a robust foundation for its investment strategy.
Resurge Growth Partners, led by Oren Peleg and Eyal Malinger—both of whom have extensive backgrounds in venture capital and private equity—aims to support ‘venture graduates.’ These are companies caught in a transitional phase where they are too advanced for traditional venture capital but remain unsuitable for private equity because of insufficient profitability or cash generation.
According to Oren Peleg, many companies find themselves in limbo: ‘If you look at a typical venture portfolio, there will be a proportion of that portfolio that has delivered high growth and is likely to become sizeable—a unicorn. Then there is a proportion of companies in the portfolio that don’t achieve market fit and fail…But then there’s a group in the middle who can no longer deliver sufficiently attractive growth to warrant further venture funding, yet are not profitable enough for private equity. These are the companies that we support.’
To equip these firms for sustained growth and profitability, Resurge provides not only funding but also the necessary operational expertise and time to transition from the venture capital model to a framework that supports long-term success. This initiative is funded by a network of esteemed family offices and high-net worth individuals, all of whom contribute on a deal-specific basis.
Resurge Growth Partners is poised to onboard its first portfolio companies by the year’s end, marking a significant step in advancing the growth of mid-stage firms.
